If you’re looking for ASX dividend shares then the three I mention in this article could be what you’re after.
Why Are Dividends Good?
Dividends are a focus by some investors because it means they get to benefit from the company’s profits, but shareholders don’t have to sell their shares to make money. Dividends are usually more reliable than the share price as well.
But some dividend shares are trading very expensively at the moment because of lower interest rates.
3 ASX Dividend Shares To Think About
Milton Corporation Limited (ASX: MLT)
Milton is a listed investment company (LIC) that just reported its FY19 result. It has been operating for many decades, paying a solid and reliable dividend for a long time. Its job is to invest in other businesses for shareholders.
Milton’s full year dividends amounted to 21.9 cents per share, which was up 15.3%. This included a 2.5 cents per share special dividend. Therefore, the ordinary dividend increased by 2.1% to 19.4 cents.
That means that Milton’s ordinary FY19 fully franked dividend yield is 4%.
Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)
WHSP is an investment house that has been going for over a hundred years. It has paid a dividend every year in its history including through the great depression, wars and the GFC.
Some of its large investment holdings include Brickworks Limited (ASX: BKW), TPG Telecom Ltd (ASX: TPM) and New Hope Corporation Limited (ASX: NHC).
It has a fully franked dividend yield of 2.55%.
ARB Corporation Limited (ASX: ARB)
ARB designs and manufactures automotive accessories for 4-wheel drives and light commercial vehicles which are sold across Australia and around the world.
ARB has steadily grown its dividend over the past 10 years with the company steadily growing sales revenue and profit after tax in that time.
It has a fully franked dividend yield of 2%.
Summary
All three of these businesses have solid dividends which have been growing over the years.
I would definitely choose WHSP of the three because of its dividend streak and focus on cashflow.
In a portfolio you could mix dividend shares like WHSP with growth shares like the ones in the free report below.
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Disclosure: Jaz owns shares of Washington H. Soul Pattinson and Co. Ltd at the time of writing, but this could change at any time.
